Analyst: EU Will Have to Accept 10% Tariff

On July 13th, BCA RESEARCH's European Chief Strategist Mathieu Savary stated that Trump's strategy is to make outrageous demands, let those demands fall through, then make a last-minute push for some concessions, and then secure a trade deal.

“We remember a framework that Trump had during his first presidential term, and that is what is happening now. What is said now doesn’t matter; what matters is where we land. The expectation is that the EU will ultimately ‘have to accept a 10% tariff, but this is something the EU can actually afford.’”

Prior to this, U.S. President Trump announced a 30% tariff on EU goods starting from August 1st. Three EU officials stated that Trump's threat to impose a 30% tariff on EU goods starting from August 1st was a negotiation tactic.